BDO Corporate Finance will help you weigh up your chances of securing either equity or debt finance. We understand what financiers are looking for and will make sure. We are here to help you in initiating and leading a wide range of transactions, as outlined below:
- Management buyouts (MBOs)
Are you part of a management team that wants to control its own destiny? Are you an owner considering selling your business to your management? In that case, a management buyout (MBO) is an attractive option for both private and (in certain instances) pubic companies.
- Management Buy-ins (MBIs)
Management buy-ins involve the control of the business passing to an outside management team, typically with private equity backing. Because of the change in management, MBIs are perceived by investors to be riskier transactions than MBOs – the new managers will be unfamiliar with the business and the previous managers may not be entirely forthcoming about all the issues. The additional risk factor can reduce the price a private equity house is prepared to pay.
Public to privates
Public to privates (or P2P) usually involves a private equity backed management team of a quoted company making an offer to shareholders to acquire their company.
The company then comes off the public market, losing its listing.
Why go private? For neglected small caps whose businesses are fundamentally strong, a P2P is now a genuine alternative. The benefits include:
- Shareholders are provided with an exit, generally at an attractive premium to the market price.
- Management can focus on the long-term strategy rather than short-term cosmetic change
- The company can access both equity and debt finance in order to build the business
- Managers and staff will typically have a greater stake in the business and greater incentive to maximise value
- The considerable cost of maintaining a public listing will be saved